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May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 11:49
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The oversupply of golf estates has claimed another victim.
Dar Es Salaam - Finance Minister
Pravin Gordhan said on Thursday that capital
flows from carry trades do not benefit the continent and can often result in
strong and uncompetitive currencies.
"Part of the challenge right now is carry trades, where billions of dollars
are thrown in very quickly in the market and leave behind appreciated exchange
rates and the impact all over the world in a negative sense," Finance Minister
Pravin Gordhan told the World Economic Forum Africa meeting in Tanzania's
capital Dar es Salaam, televised on CNBC.
"That's why earlier on I argued that what we require is more medium-term
approaches to capital flows and genuine investment in creating jobs, creating
infrastructure."
South Africa's rand gained nearly 30% against the dollar in 2009
partly due to carry trade, in which investors borrow in low-yielding currencies,
such as the Japanese yen and buy high-yielding currencies such as the rand.
South Africa's benchmark interest rate at 6.5% is very attractive to
investors from some developed countries where rates are close zero.
The South African government and the central bank have expressed concern that
the currency's strength could hamper a recovery among both exporters and
importers.
Gordhan's comments followed those of Economic Development Minister Ebrahim
Patel, who on Wednesday said the rand needed to be weaker to support producers
in Africa's biggest economy.
Gordhan also told delegates at the meeting that regional integration would
help Africa benefit more from capital inflows.
"If we can collectively develop a code for (capital inflows) then Africa will
be much better off in the next years," he said, adding governments and the
private sector should work together to boost the continent's economic
prospects.
- Reuters